Economy

Nigeria’s External Reserves Drop 8% to $39.6m in 2019

Published

6 years ago

09/12/2019

By Adedapo Adesanya

Data obtained by Business Post on Monday from the Central Bank of Nigeria (CBN) showed that from the first business day of this year, January 2, 2019, till Friday, December 6, 2019, the country’s external reserves dropped 8.13 percent from $43.076 billion to $39.576 billion. This represents a decline of about $3.458 billion.

Business Post reports that the reserves have been depleting lately as a result of decline in the price of crude oil on the international market. Oil, which is Nigeria’s mainstay in terms of foreign exchange, has suffered frequent drop in prices at the market as a result of the trade war between the United States and China.

From the data harvested from the CBN, the foreign reserve, as at the opening day in January was at $43.076 billion, but dropped to $42.297 billion at the end of the February 2019, shedding $779 million.

However, by the end of March, the reserves recovered and rose to $44.428 billion. It further increased to $44.793 billion as the end of April and as at end of the month of May, the external reserves stood at $45.123 billion, but dropped by $53.4 million by the close of June to $45.070 billion.

As the end of the month of July, the country foreign reserves had dropped further to $44.903 billion and in August, it fell to $43.608 billion.

Between the end of August and September, the external reserves shed a total of $1.76 billion to $41.852 billion, this extended into October as the reserves further recorded a decline to $40.464 billion.

In November, the CBN data showed that the reserves dropped below the $40 billion mark as the figures closed the month of November at $39.803 billion.

Into the final month of the year, the reserves have further recorded drops and as at Friday December 6, 2019, what is left in the reserves is not more than $39.576 billion.

Recently, when Governor of the CBN, Mr Godwin Emefiele, was asked to speak on the decline in the foreign exchange reserves to less than $40 billion, he said the drop should not cause panic or any agitation for unnecessary policies.

The CBN Chief had said the bank would continue to sustain its intervention in the foreign exchange market despite the drop in external reserves.

“If during the period of recession in 2015 to 2017 reserves dropped as low as $23 billion and yet we still managed our position and we were able to get out of the situation; we are saying now that at even below $40 billion, our threshold is still very high.

“We will never have any fears and there is no need for anybody to worry,” he had stated.

He further said that with crude oil selling at a price of about $63 per barrel, the drop in reserves to less than $40 billion was not enough reason for panic, noting that despite the drop in reserves, the bank’s intervention policy of sustaining the Naira would continue.

Foreign exchange reserves are assets held in reserve by a monetary authority in foreign currencies. These reserves are used to back liabilities and influence monetary policy. These are foreign banknotes, deposits, bonds, treasury bills and other foreign government securities.

These assets serve many purposes but are most significantly held to ensure that a government or its agency has backup funds if their national currency rapidly devalues.

Economy

NBA Demands Suspension of Controversial Tax Laws

Published

1 hour ago

24/12/2025

Modupe Gbadeyanka

By Modupe Gbadeyanka

The federal government has been asked by the Nigerian Bar Association (NBA) to suspend the implementation of the controversial tax laws.

In a reaction to the tax reform acts, the president of the group, Mr Afam Osigwe (SAN), the suspension of the laws would allow for a proper investigation into allegations of alterations in the gazetted and harmonised copies.

A member of the House of Representatives, Mr Abdussamad Dasuki, alleged that some parts of the laws passed by the parliament were different from the gazetted copy.

To address the issues raised, the NBA said it is “imperative that a comprehensive, open, and transparent investigation be conducted to clarify the circumstances surrounding the enactment of the laws and to restore public confidence in the legislative process.”

“Until these issues are fully examined and resolved, all plans for the implementation of the Tax Reform Acts should be immediately suspended,” the association declared.

It noted that the controversies “raise grave concerns about the integrity, transparency, and credibility of Nigeria’s legislative process.”

“These developments strike at the very heart of constitutional governance and call into question the procedural sanctity that must attend lawmaking in a democratic society,” it noted.

“Legal and policy uncertainty of this magnitude has far-reaching consequences. It unsettles the business environment, erodes investor confidence, and creates unpredictability for individuals, businesses, and institutions required to comply with the law. Such uncertainty is inimical to economic stability and should have no place in a system governed by the rule of law.

“Nigeria’s constitutional democracy demands that laws, especially those with profound economic and social implications, emerge from processes that are transparent, accountable, and beyond reproach. Anything short of this undermines public trust and weakens the foundation upon which lawful governance rests.

“We therefore call on all relevant authorities to act swiftly and responsibly in addressing this controversy, in the overriding interest of constitutional order, economic stability, and the preservation of the rule of law,” the organisation stated.

Economy

MRS Oil, Two Others Raise NASD Bourse Higher by 0.52%

Published

3 hours ago

24/12/2025

Adedapo Adesanya

By Adedapo Adesanya

Demand for hot stocks, including MRS Oil Plc, buoyed the NASD Over-the-Counter (OTC) Securities Exchange by 0.52 per cent on Tuesday, December 23.

The energy company was one of the three price gainers for the session as it chalked up N19.69 to sell at N216.59 per share versus the previous day’s value of N196.90 per share.

Further, FrieslandCampina Wamco Nigeria Plc gained N2.95 to close at N56.75 per unit versus N53.80 per unit and Golden Capital Plc appreciated by 84 Kobo to N9.29 per share from Monday’s N8.45 per share.

Consequently, the market capitalisation went up by N10.95 billion to N2.125 trillion from N2.125 trillion and the NASD Unlisted Security Index (NSI) rose by 18.31 points to 3,570.37 points from 3,552.06 points.

Yesterday, the NASD bourse recorded a price loser, the Central Securities Clearing System Plc (CSCS), which gave up 17 Kobo to close at N33.70 per unit against the previous trading value of N33.87 per unit.

The volume of securities traded at the session went down by 97.6 per cent to 297,902 units from the previous day’s 12.6 million units, the value of securities decreased by 98.5 per cent to N10.5 million from N713.6 million, and the number of deals remained flat at 32 deals.

By value, Infrastructure Credit Guarantee Company (InfraCredit) Plc ended as the most actively traded stock on a year-to-date basis with 5.8 billion units exchanged for N16.4 billion. This was followed by Okitipupa Plc, which traded 178.9 million units valued at N9.5 billion, and MRS Oil Plc with 36.1 million units worth N4.9 billion.

In terms of volume, also on a year-to-date basis, InfraCredit Plc led the chart with a turnover of 5.8 billion units traded for N16.4 billion. Industrial and General Insurance (IGI) Plc ranked second with 1.2 billion units sold for N420.7 million, while Impresit Bakolori Plc followed with the sale of 536.9 million units valued at N524.9 million.

Economy

NGX All-Share Index Soars to 153,354.13 points

Published

4 hours ago

24/12/2025

Dipo Olowookere

By Dipo Olowookere

It was another bullish trading session for the Nigerian Exchange (NGX) Limited as it closed higher by 0.59 per cent on Tuesday.

The market further rallied due to continued interest in large and mid-cap stocks on the exchange by investors rebalancing their portfolios for the year-end.

Yesterday, Aluminium Extrusion sustained its upward trajectory after it further appreciated by 9.96 per cent to N14.90, as Austin Laz gained 9.81 per cent to close at N2.91, Custodian Investment improved by 9.69 per cent to N38.50, and First Holdco soared by 9.35 per cent to N50.30.

Conversely, Royal Exchange declined by 7.22 per cent to N1.80, Champion Breweries shrank by 6.57 per cent to N15.65, NASCON lost 5.36 per cent to trade at N105.05, Sovereign Trust Insurance depreciated by 5.28 per cent to N3.77, and Japaul went down by 4.51 per cent to N2.33.

At the close of business, 29 shares ended on the gainers’ table and 27 shares finished on the losers’ log, representing a positive market breadth index and bullish investor sentiment.

This raised the All-Share Index (ASI) by 895.06 points to 153,354.13 points from 152,459.07 points and lifted the market capitalisation by N579 billion to N97.772 trillion from the previous day’s N97.193 trillion.

VFD Group finished the day as the busiest stock after it recorded a turnover of 192.0 million units worth N2.1 billion, GTCO exchanged 63.5 million units valued at N5.6 billion, Access Holdings traded 49.8 million units for N1.0 billion, First Holdco sold 45.8 million units valued at N2.3 billion, and Secure Electronic Technology transacted 38.3 million units worth N28.4 million.

In all, market participants bought and sold 677.4 million units valued at N20.8 billion in 27,589 deals compared with the 451.5 million units worth N13.0 billion traded in 33,327 deals on Monday, showing an improvement in the trading volume and value by 50.03 per cent and 60.00 per cent apiece, and a shortfall in the number of deals by 17.22 per cent.